Comparative balance sheets for Softech Canvas Goods for 2024 and 2023 are shown below. Softech pays no dividends and instead reinvests all earnings for future growth. Comparative Balance Sheets ($ in thousands) Assets: Cash Accounts receivable Short-term investments Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity: Current liabilities Bonds payable Paid-in capital Retained earnings December 31 2024 2023 $ 50 $ 40 100 120 50 40 200 140 600 550 $ 1,000 $ 890 $ 240 $ 210 160 160 400 400 200 120 $ 1,000 $ 890 Required: 1. Determine the return on shareholders' equity for 2024. 2. What does the ratio measure? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the return on shareholders' equity for 2024. Note: Round your answer to 2 decimal places. Return on shareholders' equity %

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section: Chapter Questions
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Comparative balance sheets for Softech Canvas Goods for 2024 and 2023 are shown below. Softech pays no dividends and instead
reinvests all earnings for future growth.
Assets:
Cash
Comparative Balance Sheets
($ in thousands)
Accounts receivable
Short-term investments
Inventory
Property, plant, and equipment (net)
Liabilities and Shareholders' Equity:
Current liabilities
Bonds payable
Paid-in capital
Retained earnings
December 31
2024
2023
$ 50
$ 40
100
120
50
40
200
140
600
550
$ 1,000
$ 890
$ 240
$ 210
160
160
400
400
200
120
$ 1,000
$ 890
Required:
1. Determine the return on shareholders' equity for 2024.
2. What does the ratio measure?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the return on shareholders' equity for 2024.
Note: Round your answer to 2 decimal places.
Return on shareholders' equity
%
Transcribed Image Text:Comparative balance sheets for Softech Canvas Goods for 2024 and 2023 are shown below. Softech pays no dividends and instead reinvests all earnings for future growth. Assets: Cash Comparative Balance Sheets ($ in thousands) Accounts receivable Short-term investments Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity: Current liabilities Bonds payable Paid-in capital Retained earnings December 31 2024 2023 $ 50 $ 40 100 120 50 40 200 140 600 550 $ 1,000 $ 890 $ 240 $ 210 160 160 400 400 200 120 $ 1,000 $ 890 Required: 1. Determine the return on shareholders' equity for 2024. 2. What does the ratio measure? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the return on shareholders' equity for 2024. Note: Round your answer to 2 decimal places. Return on shareholders' equity %
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ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage